WITH record capacity expected this year, major container lines will try to impose rate hikes in a variety of trades over the coming months despite headwinds that suggest any increases in freight rates achieved are not expected to stick in the near-term.
Global demand for containerised cargo is forecast to increase 4.2 per cent, according to Alphaliner, which is far from enough to remedy the container industry's overcapacity problem, reports the Journal of Commerce.
As a result, shipping line are expected to continue losing money in the upcoming year as they struggle to increase rates and reduce costs via slow steaming and vessel-sharing alliances. Nevertheless, carriers have announced a number of planned rate hikes, scheduled to take effect in January and February.
Hapag-Lloyd hopes to increase rates on its westbound trade from East Asia, excluding Japan, to Europe by US$500 per TEU, beginning from January 6. The container line also aims to raise rates on westbound shipments from India and Pakistan to Europe by $250 per TEU from February 1.
Maersk Line has scheduled a rate hike on its trade from the Middle East and Indian subcontinent to Europe, effective February 15. For shipments to North Europe, the increase will be $400 per TEU and $600 per 40-foot unit (FEU) and 45-foot container.
For shipments to the Mediterranean, excluding Syria, the hike will be $300 per 20-foot container and $500 per FEU and 45-foot container. For shipments to Syria, the increase will be $220 per TEU and $370 per FEU and 45-foot container.
CMA CGM intends to boost rates on shipments from Asia to East Africa by $100 per TEU, starting January 6. The carrier also hopes to increase rates on cargo from Asia to West Africa by $150 per TEU, effective January 10.
MSC aims to raise rates on its trade from the Far East to West Africa and Angola by $150 per TEU and $300 per FEU from January 10.
On the Asia-Australia tradelane, Hamburg Sud plans to introduce a rate increase on its southbound trade for export shipments from Hong Kong, South Korea, China and Taiwan to Australia by $400 per TEU, starting January 7.
MSC has scheduled a rate increase of $200 per TEU for southbound cargo in its Capricorn service from Southeast Asia to Australia, which will come into effect on January 15.
For Asia-Latin America shipments, MSC postponed its scheduled rate hike on shipments from the Far East to South America's east coast from December 1 to January 1, and the increase was $750 per TEU and $1,500 per FEU.
Cosco Container Lines also planned increases starting January 1 on its trade from the Far East to South America's east coast by $650 per TEU and $1,300 per FEU.
CMA CGM implemented a rate increase on its trade from Asia, excluding Japan, to Sri Lanka, Pakistan and West India of $100 per TEU starting on January 1; and effective January 15, the increase will be $150 per TEU.
